Equity Residential (NYSE:EQR – Get Free Report) and Americold Realty Trust (NYSE:COLD – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Dividends
Equity Residential pays an annual dividend of $2.70 per share and has a dividend yield of 3.7%. Americold Realty Trust pays an annual dividend of $0.88 per share and has a dividend yield of 4.0%. Equity Residential pays out 110.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Americold Realty Trust pays out -87.1% of its earnings in the form of a dividend. Americold Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
92.7% of Equity Residential shares are held by institutional investors. Comparatively, 98.1% of Americold Realty Trust shares are held by institutional investors. 1.0% of Equity Residential shares are held by company insiders. Comparatively, 0.2% of Americold Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Equity Residential | $2.87 billion | 9.72 | $835.44 million | $2.44 | 30.16 |
Americold Realty Trust | $2.67 billion | 2.32 | -$336.21 million | ($1.01) | -21.63 |
Equity Residential has higher revenue and earnings than Americold Realty Trust. Americold Realty Trust is trading at a lower price-to-earnings ratio than Equity Residential, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings for Equity Residential and Americold Realty Trust, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Equity Residential | 0 | 11 | 8 | 0 | 2.42 |
Americold Realty Trust | 0 | 2 | 9 | 0 | 2.82 |
Equity Residential currently has a consensus target price of $77.25, suggesting a potential upside of 4.97%. Americold Realty Trust has a consensus target price of $30.73, suggesting a potential upside of 40.63%. Given Americold Realty Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Americold Realty Trust is more favorable than Equity Residential.
Profitability
This table compares Equity Residential and Americold Realty Trust’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Equity Residential | 31.57% | 8.31% | 4.61% |
Americold Realty Trust | -10.63% | -8.08% | -3.64% |
Volatility and Risk
Equity Residential has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Americold Realty Trust has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.
Summary
Equity Residential beats Americold Realty Trust on 10 of the 16 factors compared between the two stocks.
About Equity Residential
Equity Residential is committed to creating communities where people thrive. The Company, a member of the S&P 500, is focused on the acquisition, development and management of residential properties located in and around dynamic cities that attract affluent long-term renters. Equity Residential owns or has investments in 305 properties consisting of 80,683 apartment units, with an established presence in Boston, New York, Washington, D.C., Seattle, San Francisco and Southern California, and an expanding presence in Denver, Atlanta, Dallas/Ft. Worth and Austin.
About Americold Realty Trust
Americold is a global leader in temperature-controlled logistics real estate and value added services. Focused on the ownership, operation, acquisition and development of temperature-controlled warehouses, Americold owns and/or operates 245 temperature-controlled warehouses, with approximately 1.5 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold's facilities are an integral component of the supply chain connecting food producers, processors, distributors and retailers to consumers.
Receive News & Ratings for Equity Residential Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Equity Residential and related companies with MarketBeat.com's FREE daily email newsletter.